1099-K Ebay/paypal sales

[jmichals1908]

Hello, Illinois has a new law that all paypal transactions over $1000 now report a 1099-k. I sold some pokemon cards I bought in 2019 and 2020, about 18 total. the amount is say $10,000, but about half was spent buying those cards that i sold. What specifically would i enter into turbotax to best document this. I entered this under miscellaneous income, i put the eaxct 1099k amount as 1099k personal property sale (10,000) and then another line as 1099k cost of personal income and entered a negative number. That negative number represents the cost of my fees and mainly the cards purchase price. Is this appropriate. I am not a business, i dont know if the irs would say yes or no. Do i do a schedule c and how would i itemize the costs, this is confusing. 

[MarilynG1]

It would be more beneficial for you to enter the 1099-K as Self-Employment Income.  Deduct the costs of items sold, vehicle expenses (mileage used to view/buy items), cell phone business use, costs of running a website, etc. to offset that income.

Type 'schedule c' in the Search area, then click on 'Jump to schedule c'. 

You will answer some questions about your Business, and TurboTax helps guide you in claiming expenses. 

Click this link for more info on Reporting Business Income and Expenses. 

[jmichals1908]

Very quickly, since this is the first year of my "business", my cost of cards was 5000. thats what I paid prior to 2020, I have no options to end for beginning value of 2020 because this is my first year. I sold all my inventory for 10,000 by June. At the end of the year 2020, I have no merchandise, so is the value of goods end 2020 $0?

[JeffreyR77]

Your beginning inventory value would be $5000 and ending inventory would be $0 if you sold all you had by year end. and had no purchased during the year.